To disburse in payment of a current transaction of

  • No School
  • AA 1
  • ngangangableh
  • 153

This preview shows page 89 - 91 out of 153 pages.

To disburse in payment of a current transaction of capital transaction in accordance with this Decree v) To disburse by way of gift or payment of an inheritance in accordance with law vi) To disburse by way of purchase of foreign currency at an authorized credit institution for remittance abroad vii) To disburse for other purposes permitted by law 19 F.4 Use of currencies of countries with a common border with Vietnam Residents being organizations and individuals who have lawful revenue in currencies of a country with a common border with Vietnam from activities of export and import goods and services or who have other lawful revenue shall be permitted to open VND accounts at authorized credit institutions in order to implement the following revenue and disbursement transactions: i) To collect proceeds from the sale of goods and services ii) To collect proceeds being the purchase at an authorized credit institution 18 Article 4 of Circular No. 20/2011/TT-NHNN 19 Article 33 of Decree No. 160: Use of VND by non-residents
Image of page 89
Doing Business in Vietnam | 90 of a currency of a country with a common border iii) To collect revenue from other legal sources in Vietnam iv) To disburse by way of payment for the import of goods or services v) To disburse by way of sale to an authorized credit institution or exchange bureau vi) To withdraw in cash in order to pay salary, bonuses and allowances to foreigners working for an organization or to spend in a country with a common border vii) To disburse for other purposes permitted by law The use of currencies of countries with common borders with Vietnam to purchase or sell goods in border areas and in economic zones of border gates must comply with regulations of the SBV. 20 F.5 Exchange rates The foreign exchange rate is set by averaging rates from the previous day’s inter-bank transactions. This crawling peg system has established a trading band that allows VND/USD exchange deals to be executed within a tight band. The Government is, however, planning to move towards a more market-determined exchange rate in coming years. Daily spot exchange rates are announced by the SBV based on the previous da y’s average rate on the interbank market. From 11 th Feb 2011 other banks must then trade within +/- 1% of this official rate instead of +/- 3% previously. F.6 Opening of bank accounts by foreign invested enterprises Enterprises with foreign owned capital and foreign parties to business co-operation contracts must open a direct investment capital foreign currency account at an authorized credit institution in order to implement the following revenue and disbursement transactions: i) Receipt of charter capital monetary contributions, receipt of capital for implementation of direct investment and receipt of medium and long- term foreign loan capital ii) Receipt of foreign currency from a foreign currency savings account of a resident being an enterprise with foreign owned capital or a foreign party to a business co-operation contract iii)
Image of page 90
Image of page 91

You've reached the end of your free preview.

Want to read all 153 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture